Mortgage Brokerage deals with hundreds of institutional and private lenders with unlimited funds, capable to fund the most difficult requests for people with job, credit, and other issues. Even if you are self employed, new to the country or first time home buyer, we have a solution for you. Rate and products, custom fitted to your needs and circumstances. FREE ADVISE!

Follow by Email

Monday, 31 December 2012

Seller Financing, another option to gain ownership

...when the Seller provides the Buyer a mortgage—can
benefit both the Home Buyers and Home Sellers.

Seller Financing can be a useful tool in this tight credit
market. It allows Sellers to move a home faster, often getting a sizable return
on their investment. Buyers often benefit from less stringent qualifying and
down payment requirements for a property that might otherwise be out of reach.

There's a greater chance of finding Sellers willing to take on the role
of financier in today’s slower market, but they still represent only a small
fraction of all Sellers. This is because a Seller Financed deal
is not without its legal, financial, and logistical hurdles. By taking the
right precautions and getting professional help of a qualified, licensed
Mortgage Broker specializing in Seller Financed Agreements For Sale, however,
Buyers and Sellers can reduce the inherent risks.

The Basics of Seller Financing

In Seller Financing, the Seller takes on the role of the Lender. Similar
to a Lease-to-Own, or a Rent-to-Own, but with Seller Financing, you are paying a Principle + Interest Payment
instead of a rental payment with a portion going to the deposit. The
Seller extends enough credit to the Buyer for the purchase price of the home,
minus any down payment (cash-to-mortgage). Both the Buyer and Seller sign an
Offer to Purchase, a Financing Schedule, and an Addendum indicating the terms
of the loan.Typically the interest will be at higher premium than what is
currently offered at the Banks or Credit Unions, but not always.

These loans are often short term—typically 1 to 3 years. The general
theory is that within a few years, the property will have gained enough in
value or the Buyers' financial situation will have improved by the help of the same Mortgage Broker enough that they
can refinance with a traditional lender. From the Seller's standpoint, the
shorter time period is also practical—Sellers don't have the life expectancy of
a mortgage lending institution or the patience to wait around for 25 to 35
years until the loan is paid off. In addition, Sellers don't want to be exposed
to the risks of extending credit longer than necessary.When You need a Mortgage, You need a PRO: MortgagePRO Free Advise/Consultation

About Me

I am a long term investor in Real Estate and PrivateMortgages for a double digit return. I am also a mortgage Broker at MortgagePRO
Ltd. helping people even with hard to approve files to get the best rate first
and second mortgage custom fitted to their own circumstances. I also offer
investors mortgage investment opportunities for an exceptional return, securing
them monthly income and retire early as these investments are RRSP eligible.
You do not have to be an expert, I will guide you. I also do credit counselling
and debt elimination therapy for people interested to get their financial well
being in order to eliminate stress.